BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A risk that affects the entire economy or large numbers or persons or groups within the economy.
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Refers to characteristics of the legal system or regulatory environment that increase the frequency or severity of losses.
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A risk that affects only individuals or small groups and not entire economy.
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Possibilities of both loss or profit.
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Detailed explanation-1: -Nondiversifiable risk (fundamental risk) is a risk that affects the entire economy or large numbers of persons or groups within the economy. It cannot be eliminated or reduced by diversification.
Detailed explanation-2: -non-diversifiable risk (countable and uncountable, plural non-diversifiable risks) (finance) An investment risk that cannot be mitigated by diversification of an asset portfolio.
Detailed explanation-3: -Systematic risks, also known as market risks, are risks that can affect an entire economic market overall or a large percentage of the total market. Market risk is the risk of losing investments due to factors, such as political risk and macroeconomic risk, that affect the performance of the overall market.
Detailed explanation-4: -Systematic risk is the risk inherent to the entire market, attributable to a mix of factors including economic, socio-political, and market-related events.
Detailed explanation-5: -A risk that affects only individuals or small groups and not the entire economy, which can be reduced or eliminated by diversification. Also called nonsystematic risk or particular risk.